Over the past decade, businesses have increasingly turned to technology to gain a competitive edge in their industry. On average, there has been a 16% year-over-year increase in worldwide spending on transformative technologies and services between 2019 and 2023.
This technology-driven business growth focus has shifted IT from a behind-the-scenes support function into a key part of business strategy. IT leaders are no longer expected to solely be technical experts – now they also must be strategic business leaders who can align technology initiatives with broader business objectives.
The primary objective of a strategic IT leader, often referred to as Chief Information Officer (CIO), is to leverage technology to accelerate the achievement of business goals.
A strategic CIO works closely with their fellow executives to develop IT-driven strategies that fuel growth, enhance relevance and competitiveness, and improve operational efficiency.
In addition to being an effective leader and collaborative business partner, the IT leader is a champion for innovation, leading discussions to not only solve current problems but also explore future business opportunities and look for ways technology can play a transformative role.
Developing and executing a strategic IT roadmap is a critical part of the CIO’s role. The process of developing an IT strategy allows a company to review its business goals and strategy, and then evaluate how technology — people, processes, systems, infrastructure, data and security — supports and drives those goals. This written plan includes specific objectives, actions, investments, resources, and timelines that are prioritized and sequenced to meet key business outcomes.
The strategic IT leader uses their industry knowledge and market insights to identify and implement the most effective technologies for the organization’s needs. Approaches that promote collaboration and change management are often used to speed up the deployment of these technologies and improve their overall efficiency.
Strategic IT leaders are instrumental in driving an organization’s digital transformation. With a holistic view of the entire business, they analyze and optimize processes across departments, leveraging technology to improve overall efficiency.
A data-driven approach is essential to ensuring the success of this transformation, with IT leaders using metrics and analytics to guide their decisions. Equally important are effective change management strategies, which help staff smoothly transition into new digital environments. To further support these efforts some organizations are even introducing the moniker of Chief Transformation Officer.
IT initiatives commonly face significant challenges during implementation, with some plans being shelved or abandoned midway. Common obstacles that cause these challenges include budget constraints, staff resistance, security risks, skills gaps, and inadequate stakeholder engagement.
To overcome these challenges, strategic IT leaders take a proactive and inclusive approach. Educating stakeholders on the project’s value, hiring or outsourcing specialized technology talent to fill skill gaps, and engaging change management or process engineering consultants are some ways to help ready your organization for the upcoming changes.
A critical component of any business strategy is the evaluation and continuous improvement of IT initiatives. This is where Key Performance Indicators (KPIs) come into play, offering a clear, measurable way to evaluate the efficiency, effectiveness, and overall impact of technology-driven business growth initiatives.
During the strategy and project planning phase, the strategic CIO collaborates with other stakeholders to define relevant KPIs. Once those are established, the IT leader is responsible for determining how to measure the corresponding metrics.
By consistently tracking KPIs, IT leaders can gauge the success of business initiatives, pinpoint areas for improvement, and guide future strategic decisions.
A successful IT strategy is only as good as its implementation, and a strong, well-prepared team is essential for turning ideas into business growth. The first step in leading teams through change is addressing the psychological and emotional aspects. A strategic CIO ensures that the team understands the benefits of new technologies and proactively addresses concerns or objections. Building morale and educating team members on the value of these changes lays the foundation for success.
Next, upskilling the team is crucial. A strategic CIO will identify the skills needed for the future, create development roadmaps for the staff, and collaborate with coaches and mentors to provide both technical training and soft skills development.
While organizations focus on acquiring and managing technology for business growth, it’s crucial to remember that the true drivers behind technology are the people.
The most successful IT leaders cultivate environments where staff feel confident in sharing new ideas and where open communication thrives. Creating opportunities for brainstorming and fostering collaboration between teams can lead to innovative and well-rounded solutions. IT leaders can further support these efforts by implementing digital tools like productivity platforms, project management software, and communication tools that enable seamless collaboration across departments.
While many large companies have the luxury of affording a strategic CIO, this can be a real challenge for small and medium-sized organizations. Many organizations are choosing to hire an outsourced CIO to combat this issue. Often, they recognize that while they may not need a full-time CIO, or can’t afford one, they can’t afford to be without an unbiased, senior IT leader to help them make sound decisions in the critical area of IT.
Hartman Executive Advisors provides a wide array of IT leadership solutions to companies and not-for-profit organizations. When you engage a Hartman CIO, you will augment your own internal capabilities, benefit from our specialized skills and experience and build the capability to eventually transfer that knowledge to rising leaders within your organization.
Contact us today to schedule a free consultation and discover how our IT leadership services can drive your business forward.